Once in the city, a new party chat will be available. (Tragedy) There are new and better equipment you can buy here. The magic shop also sells LV4 White and LV3 Time Magics here. For hidden items, search the barrels in the alley west of town to get an Elixir. Enter the commander's house for more cutscenes.
The next day, new party chats can be viewed. (Eleanor's Home Cooking, Keeping Up with Ringabel) Head inside Commander Goodman's house and search the southwest corner of the floor to find a hidden Gale Hairpin. Go the second floor to the upper left and find the hidden Kunai in the upper-right corner of the bedroom.
Make your preparations and leave the town. Travel east back to Eisen Bridge.
Upon talking to Commander Goodman, he'll ask you to travel to Grapp Keep to scout it. Make your preparations and head to the northeast. A new sub-scenario will be available at this point. If you want to do that first (and I recommend that you do so), travel back to the Old House by the shore. For the complete walkthrough of this sub-scenario, follow this link.
When ready, go past the garrison east of Eisen Bridge and follow the trail to the northeast. You should see the fortress on top of a small hill at the end of the trail.